Shipping Container Shortage - What Does this Mean for Xmas?

Over the course of the last year, there has been a lot of talk about the lack of shipping containers globally. Although this is the practical reality for anyone who imports and exports items around the world, it is not strictly true to say that shipping containers are in short supply. What there is, however, is a logistical problem – one that was largely caused by the pandemic – such that shipping containers have been delayed getting to and from their usual destinations. In other words, there are more than enough shipping containers to go around this Christmas – they just might not be in the part(s) of the world where they would be most useful. What can you do to get around this problem?

Plan Ahead

The whole world knows that there has been an issue with containerised shipments in recent months, so do what your forward-thinking competitors are doing and make plans for your supply chains further in advance. Take more stock than you usually would so that you can cope with a delay to your normal delivery cycle and keep production up in the run-up to the Christmas period when your products are likely to be most in-demand. Talk to your suppliers about any potential production issues that they may have and make sure every shipping container you use for importing items is maximised so you get the best value from it.

Avoid Your Suppliers Handling Shipments

According to one of the UK's most proficient freight forwarding companies, Barrington Freight, British firms that import from countries like China often leave all of the consignment arrangements to their overseas suppliers. However, this means being in their hands and some suppliers just aren't incentivised enough to make sure your orders work their way through Chinese ports rapidly enough. If so, planning your containerised imports from the UK would be better, especially when demand for containers is likely to be at its highest. What's more, good freight forwarding firms can also help with customs declarations and other aspects of paperwork that can slow containerised deliveries down.

Opt for Air Freight

Remember that for higher value items, air freight is also an option. Of course, containers cost less to transport by sea but when you have to pay a premium to even get hold of one when there is a shortage, air freight can be that much more competitive. Generally speaking, you'll need a consignment of at least 100kg, or more, to make this a viable alternative to containerised shipments.

Set Realistic Expectations

In the run-up to Christmas, it seems that everyone wants everything sooner. If your customers are trying to restock before the festive period or simply want to have everything sorted out before they close down for a week or two, then make sure they know what your lead times are. Bear in mind that these might be longer than usual due to the global shipping container problems. Ensuring they know what you are truly capable of is, of course, much better than over-promising and under-delivering.

This article does not necessarily reflect the opinions of the editors or the management of EconoTimes